City inks affordable housing deal
Las Vegas officials agreed to sell a downtrodden apartment complex Wednesday to a developer who has promised to renovate the property and rent it cheaply to senior citizens.
The agreement also removes the city from a lawsuit in which the buyer, California businessman Walt Walters, said he was unjustly cut off when he tried to buy the complex for about $1 million less than the price he's now paying.
Walters agreed to pay the city $5.2 million for the 80-unit Monterey Villas complex on Tam Drive near Sahara Avenue, just down from the Strip, the Stratosphere and the high-rise Allure condominium building.
Once the transaction is complete, he has 30 days to start renovations. The target rents are $550 for a one-bedroom unit and $750 for a two-bedroom apartment.
Council members wanted assurances that the housing would remain affordable for low-income tenants. Walters has five years to pay the $5.2 million, and until that's paid off the units must remain affordable housing.
Once the note is paid, though, that requirement no longer applies.
Mayor Oscar Goodman said he was satisfied by Walters' record of maintaining similar projects in the area.
Matthew Dushoff, Walters' attorney, said his client isn't trying to make a quick buck.
"That's not Walt's style," Dushoff said. "This is what he does: affordable housing."
The city bought the closed complex last year. The apartments were shut down for operating without a business license and had been cited numerous times for code violations, including electrical wiring problems and sewage on the apartment floors.
Walters had been slated to buy the apartments for just under $4.2 million, but his deal was canceled when the then-owners requested voluminous financial data. Walters sued them and city officials, alleging he had been forced aside so that the sellers could take the city's higher offer.
The settlement dismisses all allegations against the city, but on Wednesday the rest of the lawsuit remained active in District Court with hearings scheduled early next year.
